Why Build Better Cars When You Can Invest in Detroit
Real Estate

post from The Truth About Cars on 09 May 2008 11:06:40 AM. © The Truth About Cars

The Associated Press reports via Yahoo! that GM has just spent $626m of its dwindling cash pile to buy its Renaissance Center office building, and another $200m cash to pick-up office buildings in nearby Pontiac, Michigan. Incroyable! Just yesterday, we learned that Fitch Ratings estimates that GM will burn through $8b in cash in '08. THEN we heard that the American automaker has set aside $200m to pay off the striking workers at American Axle. What if other struggling GM suppliers need a cash infusion? Delhi's not a done deal. AND one wonders if GM's going to fork-out $600m to GMAC to keep the mortgage lender afloat. The Volt development program (and the rest) are sucking-up the bucks. In short, is this really the best time to be shelling-out millions to reduce the rent? We're thinking... no.